Danimer Scientific Goes Public Through $890 Million Merger Deal, Eyes Massive Scale-Up in Biodegradable Plastics

Danimer Scientific, a bioplastics innovator focused on environmentally sustainable alternatives to conventional plastic, is set to become a publicly traded company following a definitive merger agreement with Live Oak Acquisition Corp. (NYSE: LOAK). The deal values Danimer Scientific at approximately $890 million and marks a pivotal moment for the company as it prepares for significant production expansion.

Strategic Financing Powers Growth Ambitions

The transaction draws substantial institutional backing, with major investors including affiliates of Apollo Global Management, Federated Hermes Kaufmann Small Cap Fund, and Live Oak-affiliated entities committing $210 million in private investment. Combined with Live Oak’s trust account assets, Danimer Scientific will have approximately $385 million in unrestricted cash to fuel its growth initiatives. This capital cushion, paired with minimal pro forma debt of only $20 million, provides the company with flexibility to pursue aggressive expansion and explore acquisitions.

From Lab to Market: Danimer Scientific’s Proprietary Technology

At the core of Danimer Scientific’s business lies Nodax™ PHA (polyhydroxyalkanoate), a 100% biodegradable and compostable polymer derived from canola oil. The material stands apart as the first PHA polymer certified as marine degradable—the industry’s highest biodegradability standard—meaning it fully breaks down in ocean environments without leaving harmful microplastics. This distinction positions Danimer Scientific products as superior alternatives to conventional plastics across a broad spectrum of applications.

The company holds over 150 patents across nearly 20 countries, including core intellectual property acquired from Procter & Gamble in 2007. This patent portfolio underpins formulations and manufacturing processes across multiple sectors, from flexible packaging to agricultural and medical uses.

Blue-Chip Customer Base Drives Revenue Momentum

Danimer Scientific has secured partnerships with major multinational corporations including PepsiCo, Nestlé, Genpak, WinCup, Columbia Packaging Group, and Plastic Suppliers Inc. These relationships demonstrate substantial commercial traction as major brands transition to biodegradable solutions for straws, food and beverage containers, and specialty packaging applications.

Current production at Danimer Scientific’s Kentucky facility operates at full capacity—the company reports being completely sold out of existing output based on signed and pending customer contracts. This sell-through status underscores genuine demand rather than speculative interest.

Massive Capacity Expansion Roadmap

Management projects transforming Danimer Scientific from its current 20 million pounds of annual production capacity to approximately 200 million pounds by 2025—a tenfold increase. Paired with blue-chip customer commitments, the company forecasts exceeding $500 million in annual revenue by 2025, with substantially improved profit margins achieved through operational scaling.

Market Opportunity in Nascent Bioplastics Industry

The global bioplastics sector currently represents less than 1% of the total plastics market, positioning early leaders like Danimer Scientific to capture significant upside as environmental regulations tighten and consumer preference shifts toward sustainable packaging. The company’s marine degradability certification and 100% compostability create competitive advantages as corporations respond to climate commitments and waste reduction mandates.

Leadership Continuity and Governance

Stephen E. Croskrey continues as Chief Executive Officer and will assume the Chairman role upon closing. The combined entity will be listed on the NYSE under a new ticker symbol and maintain its Danimer Scientific brand name. Rick Hendrix from Live Oak will join the board, alongside John Amboian as Lead Independent Director.

The transaction requires approval from shareholders of both companies and customary regulatory clearances. Holders representing a majority of Danimer Scientific stock have already committed voting support agreements.